"The Canadian government approved Ontario and New Brunswick’s output-based pricing systems (OBPS) under the federal carbon pricing framework on Monday, despite Ottawa’s own admission that both programmes in the conservative-led jurisdictions will achieve fewer GHG reductions than the national ‘backstop’ mechanism.
"Toronto-based analysts ClearBlue Markets noted the MECP previously said it would propose amendments to the EPS to allow regulated entities to transition from the federal OBPS to the provincial programme.
"'Additionally, the MECP may expand the scope of the EPS programme to include additional sectors like public institutions such as hospitals and universities,' ClearBlue said in an emailed update."